Advice on 2nd card

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Whatamuji
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Re: Advice on 2nd card

Postby Whatamuji » Fri Jul 10, 2015 2:33 pm

An option with your Discover card you might want to consider if you're shying away from the rotating categories is that you can convert your Discover card into a Discover IT Chrome card which would give you 2% back on Gas and Restaurants and 1% back on everything else thus negating your need to remember the cash-back categories and increasing your cash-back percentages.
Kohls: $300, Discover IT: $1.8k, Capital One Quicksilver: $2k, Amazon Store Card: $2.2k, BoA Cash Rewards: 1k, Chase Freedom: 3.2k, AMEX HHonors 3k


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Vattené
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Re: Advice on 2nd card

Postby Vattené » Fri Jul 10, 2015 3:54 pm

It shouldn't make any difference. A product change should have no impact at all on your credit reports. I would do the PC first, however, just so you can ask the CSR if there will be a hard pull. This coming from someone that calls with every CLI request just to be sure there will be no hard pull (even though all reports I've heard say Discover will try with a SP then explicitly ask you before taking a HP).
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Kevin86475391
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Re: Advice on 2nd card

Postby Kevin86475391 » Fri Jul 10, 2015 8:34 pm

mjl5007 wrote:It occurs to me that perhaps I could/should convert the Open Road to a Discover it to get a "bonus categories" card, and then get a Citi Double Cash to use for everyday purchases that don't fit the current categories?


Sounds to me like you already have the perfect approach in mind based on your spending habits and situation. I'm very similar in that travel cards/miles are useless to me and I never make more than one or so nearby domestic trips a year, also PIF every month. I'd definitely stay away from annual fee cards too unless your spending increases significantly.

I have both the Discover IT and the Citi Double Cash and these are great cards! Personally I have a few other rewards cards in the mix, but if you want to stick with just 2, those complement each other very nicely. Also, though it doesn't sound like inquiries would be an issue to begin with since you don't have a lot of open accounts, if you convert the Discover card I think you'll also be able to avoid a credit pull.

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CarefulBuilder14
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Re: Advice on 2nd card

Postby CarefulBuilder14 » Fri Jul 10, 2015 8:42 pm

BCP is reasonable, but Sallie Mae Rewards (the gas/grocery/books one) is also worth considering. I don't think you can go very wrong with either. BCE is also reasonable.

There are rumors that Barclaycard will soon cut the rewards on Sallie Mae, but I don't know if the rumors have any truth to them.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

amex007
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Re: Advice on 2nd card

Postby amex007 » Sat Jul 11, 2015 10:01 pm

Vattené wrote:I would recommend a two-pronged approach given your current situation:
  • Get a cash back card for every day use. Cash back is simple and you know your return rate. The BCP or BCE are both great options. The BCP will be a workhorse for you, and as you mention net you more than the BCE given your spending estimates. Even using your most conservative figures of $400 a month on groceries with 60% at supermarkets puts you at $240/month in a bonus category. That's $86.40 per year on BCE compared to $97.80 on BCP net of the annual fee. Alternatively, if you are worried about acceptance*, consider the BofA Cash Rewards card for 3%, 2%, and 1% on gas, grocery, and everything else, respectively with no annual fee. Since you spend significantly more on groceries than gas, though, even the BCE would be a better fit strictly from a rewards perspective.

  • Keep your Discover account but product change to the it card. Speak with a CSR to be sure, but it shouldn't have any impact on your credit: no hard inquiry since you are keeping the account and history, just changing the rewards structure. It isn't as straightforward as the BCP's constant categories, but you already have an account so you might as well switch it to something that will earn you more. You can use it exclusively for the 5% rotating categories if you wish. Not sure if it is the same with Open Road, but the it lets you redeem for any amount of cash back, so you can put minimal spending on it and not worry about waiting to reach a redemption threshold. Plus, signing up for bonus categories honestly is not that much of a hassle. They only change every three months and you can set reminders so you don't miss it.

*Many cite acceptance as a reservation for getting Amex or Discover, but I don't think this should be too much of a concern (unless perhaps you spend a lot at smaller/non-chain/mom-and-pop merchants). In my experience it hasn't been a problem at all, and I use Amex and Discover as my main cards. Most places that take MC/Visa will at least take either Discover or Amex. You may have to use debit once in a long while but if rewards are a big priority, they will greatly outweigh the inconvenience.


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